Businesses would strongly oppose new proposals to restore local authority control over business rates, a professor leading a government review of local government finance has been told.
The Federation of Small Businesses (FSB) has launched a petition campaign from London and across England and Wales that it says highlights the ‘strength of feeling’ amongst small businesses against such a move.
The FSB said it hopes the campaign will persuade Sir Michael Lyons, professor of public policy at Birmingham University who has been asked by the government to review the funding of local government finance, from recommending a switch back to local business taxation.
The FSB said ‘rumours abound’ such a move is recommended in his report, which is due in December, and could put many jobs at risk.
“Our members have long memories and they remember the dark days of the 1980s when some local authorities hammered businesses with outrageous rises in their rates,” said Roger Culcheth, FSB local government policy chairman.
“Sir Michael Lyons has been given a difficult task but we ask him not to recommend measures which will be devastating to businesses.
“The business rates system is far from perfect but having it set at national level ensures that it is a national issue. To allow local government to go back to the bad old days will threaten future economic growth and employment levels.”
